Lahore, September 06, 2021 (PPI-OT):The rating of AKD Cash Fund (or the “Fund”) reflects the Fund’s low risk profile emanating from its portfolio allocation towards low risk avenues. At end Jun’21, the Fund’s assets primarily invested in T-bills ~99%. Since Dec’20, the net assets of the Fund slightly decreased by ~14% and stood at PKR 419mln.

The unit holding pattern of the Fund is highly concentrated in top10 investors which represents ~89% of the fund’s assets and exposing the Fund to redemption pressure. The investment policy of the Fund strictly prohibits the investments below AA rated avenues, the current strategy is in line with the investment policy. Weighted average maturity (WAM) of the Fund is capped at 90 days, the Fund remained compliant with the limit.

Going forward, the fund intends to maintain/increase its exposure to short term government securities, while the rating remains dependent on maintaining exposure with high credit quality financial institutions. Material changes in the Fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com